GOVERNMENT: New Blood

The Reconstruction Finance Corp., which
has grubstaked Kaiser-Frazer Corp. to some $50 million, last week
decided to ride along on the mule as well. To K-F's board of directors,
the RFC appointed their own representative,* 26-year-old Detroit Lawyer
Alan E. Schwartz. A Harvard Law School graduate (1950) who had caught
RFChairman Harry McDonald's eye when pleading cases before government
bureaus, Schwartz will attend all of K-F's board meetings, keep tabs on
the company's finances (K-F's losses in the past seven years: $53
million). Explained RFC: "After all, their interest is the same as
oursto make money for the company."